Parliamentary Committee Releases Report on NBN; Recommends Extensive Changes to Current Plan

Wednesday 4 October 2017 @ 9.56 a.m. | Legal Research

The Joint Standing Committee on the National Broadband Network ('NBN') has released its first report from its inquiry last week on 29 September 2017. Amongst the extensive recommendations, the key recommendation was that the government enact legislation to give people clear information about the maximum speed that their connection could reach and there should be an independent audit of NBN Co’s business outcomes.

Key Findings

The report found that consumer satisfaction regarding connecting to the NBN was low, due to thelack of clear information on the matter. The report stated:

“The committee heard evidence that the involvement of multiple parties during the installation and connection process has the potential to cause considerable confusion among customers, particularly when there are delays or problems with the installation process. This is compounded by the fact that installation processes often vary depending on the technology type and location involved.”

The report also noted that the needs of regional and rural internet users were not being adequately met.

Key Recommendations

Amongst 23 recommendations, the key recommendations are:

  • The enactment of legislation in order to provide people with clearer information about the broadband speeds;
  • The abandonment of the current mixed technology rollout plan and instead the use of fibre-to-kerb technology;
  • The commissioning of a full independent audit and assessment of the long-term assumptions which underpin NBN Co’s financial plan.

Background to the Inquiry

The Joint Standing Committee was established to inquire into the NBN rollout on 14 September 2017. The committee is comprised of nine Members and eight Senators. The joint standing committee is led by Sussan Ley MP. The framework of the NBN is supported by the National Broadband Network Companies Act 2011 (Cth) and the Telecommunications Legislation Amendment (National Broadband Network Measures—Access Arrangements) Act 2011  (Cth), which came into force in April 2011.

The Committee is expected to report to the House of Parliament annually on the progress of the rollout, usage in metropolitan and regional areas, Australia’s comparative position with regards to broadband technology, activation sates and usage demands, and any other related matters.

Future Directions

It is likely that the government will not agree with the recommendations, as noted in the dissenting report issued by the five Liberal members of the Committee, including Ms Ley. Regarding any changes,the dissenting report noted:

“Under the Coalition Government, this important infrastructure project is continuing at a more manageable cost and is on track to deliver all households access to better broadband by 2020. An important point is that someone must in the end pay for the network. This means that if the cost of the network increases, the increase must either be paid for by consumers through higher retail prices, or tax payers through more funding.” 

An NBN Co. spokesperson said:

“No large-scale construction project has ever been problem-free. With a workforce of close to 30,000 people digging trenches, hauling cable, climbing poles and going into people’s yards and homes, there are inevitably going to be some issues. This is especially the case as the rollout has hit an unprecedented pace, with tens of thousands of homes connecting every week. We need to maintain the balance of getting broadband to people as quickly as possible, while minimising these problems. The rollout of the NBN network is a complex eco-system which can be inconvenient and frustrating for some, but ensures Australia will emerge in just over two years’ time as the first fully connected continent, with wholesale speeds of at least 25Mbps available to all.”

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Sources:

Joint Standing Committee on the National Broadband Network, 'The rollout of the National Broadband Network,' (report) 29 September 2017. 

David Swan, 'NBN inquiry: joint committee recommends shift to fibre,' (The Australian) 29 September 2017. 

Glen Humphries, 'Govt inquiry finds confusion over NBN' (Illawara Mercury) 3 October 2017.

Terms of Reference of the Joint Standing Committee on the National Broadband Network.

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